November 2024 brings significant changes to the Alojamento Local (AL) landscape in Portugal.
Starting November 1, 2024, Portugal has loosened its grip on short-term rentals, reversing some of the stricter rules introduced in 2023. These changes to the Alojamento Local (AL) laws are designed to provide a more stable and flexible environment for property owners, especially those renting out apartments.
If you’re an owner or considering investing in a short-term rental property in Lagos, Algarve, it’s crucial to be aware of these updates. Here’s a breakdown of the key changes :
1. Goodbye to Licence Expiration and Non-Transferability:
- Permanent Licences: AL licences are now permanent! You no longer need to worry about renewing them every five years.
- Transferable Licences: You can now transfer your AL licence to another person or entity. This is great news for those looking to sell their property or pass it on to family members.
2. Condominiums Have Less Control:
- Easier Application Process: While you still need to adhere to your building’s regulations, you no longer need condominium approval to apply for an AL licence.
- Existing ALs are Protected: Even if your condominium prohibits new ALs, existing ones are protected.
3. New AL Licences are Available (Mostly):
- Councils Decide: The general ban on new AL licences has been lifted. Local councils now have the power to regulate new licences based on local housing needs. Lagos Council will determine the specific rules for our area.
4. Contention Areas:
- Lisbon and Ericeira: Currently, only parts of Lisbon and Ericeira are designated as “Contention Areas” with stricter rules. It remains to be seen if Lagos will adopt similar measures.
What This Means for You:
These changes generally make it easier to own and operate an AL property in Portugal. However they don’t yet allow a new buyer to obtain a license.
Municipalities with over 1,000 registered ALs: Have one year from November 1st, 2024, to establish their regulations.
Lagos hasn’t yet defined it’s rules, but stay tuned and subscribe to our newsletter to make sure you don’t miss any important update!